Tag: Motley Fool

In my ASX share portfolio, I always try and follow the advice of Warren Buffett, and only buy ASX shares and dividend stocks that I never plan to sell. Sometimes, this works out (at least so far), and sometimes it doesn’t.

But today, I want to discuss three ASX dividend stocks that have worked wonders for me, and that I plan on never selling.

3 ASX dividend stocks I won’t ever sell

Telstra Group Ltd (ASX: TLS)

First up is ASX 200 telco and dividend stock Telstra. Telstra is a company we’d all be reasonably familiar with. But I keep coming back to Telstra shares, thanks to the insurmountable moat this company possesses (in my view).

Telstra is simply the best telco in Australia. It commands the highest-quality mobile network in the country, and offers 5G coverage over significantly more ground than its rivals. Many customers are with Telstra purely because they have no other option.

As such, I think Telstra is a strong business to invest in. The company has been growing its generous dividend in recent years too, which today offers a fully-franked dividend yield of around 4.3%.

National Australia Bank Ltd (ASX: NAB)

Next up we have ASX 200 big four bank and dividend stock NAB.

Like Telstra, NAB enjoys some significant advantages that make it a compelling investment in my eyes. It is one of the big four banks, which enables it to enjoy government guarantees and a significant reputation for stability and financial security.

NAB has been paying out strong dividends for decades now, and I can’t see why this might change. As it currently stands, you can get a solid and fully franked dividend yield from NAB of well over 5%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Last but certainly not least, we have ASX 200 investment house Soul Patts to get into. Soul Patts is the best dividend stock on the market in my view. This company has given investors an annual dividend pay rise every single year since 2000, which is something that no other company on the ASX can say.

There’s not much to dislike with Soul Patts. It offers investors a diversified portfolio of ASX shares, as well as other investments. The company has a strong track record of managing these investments to produce exceptional returns for shareholders.

Last month, Soul Patts confirmed that investors have enjoyed an average total shareholder return (including dividends) of 12.5% per annum over the 20 years to 31 July 2023. The company’s shares offer a fully-franked dividend yield of just over 2.6% right now.

With those kinds of numbers, why on earth would I sell this dividend stock?

The post Lifetime income: 3 ASX dividend stocks I’m planning to never sell appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Rivers of cash: Here’s how much Soul Patts shares have paid out in dividends since 2019
• Here’s why I think NAB is a no-brainer ASX dividend stock
• 3 ASX shares I think are ready for dividend hikes in 2024
• Is Telstra stock a low-risk investment for 2024?
• What will my ASX 200 bank stocks be worth in 5 years?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WJCbyS4

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this mining giant’s shares with a lowered price target of $49.40. This follows the release of a slightly weaker than expected second quarter update. While not overly impressed with the quarter, the broker has seen enough to remain positive. It also continues to forecast an attractive 5% dividend yield in FY 2024. The BHP share price is trading at $46.04 on Friday.

Suncorp Group Ltd (ASX: SUN)

A note out of Citi reveals that its analysts have retained their buy rating on this insurance giant’s shares with an improved price target of $15.55. Citi is feeling confident ahead of the release of Suncorp’s results next month. It expects strong premium increases to be a big boost to its profits. Citi also suspects that Suncorp will have ended the period with some catastrophe allowance to spare. The Suncorp share price is fetching $14.15 this morning.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Morgan Stanley have retained their overweight rating on this wine giant’s shares with a trimmed price target of $13.75. The broker has updated its financial model to reflect the acquisition of the DAOU luxury wine brand. While the broker has increased its earnings estimates, its valuation takes a small hit due to integration risks. The Treasury Wine share price is trading at $10.47 today.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are BHP shares a buy following the miner’s Q2 update?
• 5 things to watch on the ASX 200 on Friday
• BHP shares tumble after missing expectations in second quarter
• 5 things to watch on the ASX 200 on Thursday
• Brokers say these high-yield ASX dividend shares are buys

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zWYLtPN

The Rio Tinto Ltd (ASX: RIO) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner closed yesterday trading for $126.86. In morning trade on Friday, shares are swapping hands for $128.16, up 1%.

For some context, the ASX 200 is up 1.3% at this same time.

The Rio Tinto share price is in the green amid news that the miner is engaged in negotiations with the Serbian government to reboot its derailed $3.7 billion Jadar lithium-borate project, one of the world’s largest greenfield lithium projects.

What’s happening with the ASX 200 miner in Serbia?

As you may recall, Rio Tinto’s Jadar mine faced stiff opposition from environmentalists in late 2021, with protestors taking to the streets to demand a stop to the project’s development.

In early 2022, Serbia’s government revoked the ASX 200 miner’s license for the proposed lithium-borates project. Although at the time, the news did not appear to have a material impact on the Rio Tinto share price.

In late 2021 Rio Tinto had forecast its first production of lithium from Jadar by 2026. The miner estimated Jadar could produce up to 58,000 tonnes of battery-grade lithium carbonate, 2.2 million tonnes of boric acid, and 255,000 tonnes of sodium sulphate annually.

Now, two years later, Rio Tinto CEO Jakob Stausholm has engaged in his first round of discussions with Serbian President Aleksandar Vucic at the World Economic Forum in Davos, Switzerland to get Jadar back on track. A development that could offer some longer-term tailwinds for the Rio Tinto share price.

“It was a very robust conversation with President Vucic and we will look to continue this discussion with the Serbian government around Jadar,” Stausholm said (quoted by The Australian Financial Review).

Stausholm said Jadar had the potential to be “a world-class asset”, with significant benefits for Serbia.

“Our aim is to help find an outcome that is in Serbia’s interests as well as ours,” he said.

Vucic called the discussions with Rio Tinto “a difficult conversation, not an easy conversation”.

But he added that, “It is important that we listen to them.”

Clearly the Serbian government is interested in the investment money that Jadar could deliver for the nation.

“The level of investments in five years would be 20% of the total level of foreign direct investments every year. Just imagine how that would strengthen Serbia,” Vucic said.

Stay tuned!

Rio Tinto share price snapshot

The Rio Tinto share price is up 1% over the past 12 months.

The ASX 200 miner’s stock has gained 10% in six months.

The post Rio Tinto share price marching higher amid ‘world-class’ lithium reboot efforts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy today
• Should you buy Rio Tinto shares following the miner’s update?
• 5 things to watch on the ASX 200 on Wednesday
• Why Core Lithium, Hub24, Lovisa, and Rio Tinto shares are dropping today
• Rio Tinto shares fall on Q4 update

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/GW52R8U

Owning Brickworks Limited (ASX: BKW) shares has been a very rewarding experience, particularly for investors focused on dividends.

In the past five years, the Brickworks share price has risen by close to 70%, as we can see on the chart below.

I like dividend-paying businesses because it allows us to receive the benefit of profit generation without having to sell our shares. Profit growth can lead to dividend growth, meaning bigger payouts and protection against inflation.

Dividends since COVID-19

I think the last few years have been a good demonstration of any company’s dividend and reliability because of how testing the circumstances were.

In the FY20 first-half result, which was released on 26 March 2020, the interim dividend grew by 5% to 20 cents per share. This was announced in the depths of the initial COVID-19 market crash and the rapidly growing number of global deaths.

Then, in the FY20 result, it grew the full-year dividend by 4% to 59 cents per share.

The FY21 first-half result saw Brickworks’ interim dividend increase by 5% to 21 cents per share.

In the FY21 result, Brickworks decided to declare an annual dividend per share of 61 cents, an increase of 3%.

The world started returning to normal in FY22, so I’ll just mention the full-year numbers from here.

In FY22, Brickworks grew its annual dividend per share to 63 cents, a rise of 3%.

Then, in FY23, the company’s annual dividend per share rose by 3% to 65 cents.

That means, between FY20 to FY23, the business paid a total of $2.48 in dividends. That’s a cash dividend return of 13% if we use the Brickworks share price from the start of 2020.

It has grown its dividend every year since 2014, which is a great record.

Brickworks share price snapshot

In the past year, the Brickworks share price has risen around 15%.

The post Own Brickworks shares? Here’s how much you’ve been paid in dividends since COVID-19! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Where I’d invest $3,000 into ASX dividend shares in January
• Top ASX passive income shares to buy in January 2024
• Dividend investing: A proven path for Australian income seekers
• I’d buy these ASX shares before interest rates start falling
• If I inherited $100,000, these are the ASX shares I’d buy for passive income

Motley Fool contributor Tristan Harrison has positions in Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xUNLXvi

Mesoblast Ltd (ASX: MSB) shares are ending the week with an almighty bang.

In morning trade, the allogeneic cellular medicines developer’s shares are up 28% to 34 cents.

Why are Mesoblast shares rocketing?

Investors have been scrambling to buy the company’s shares today after it received a major boost from regulators in the United States.

According to the release, the United States Food and Drug Administration (FDA) has granted its allogeneic cell therapy Revascor (rexlemestrocel-L) a Rare Pediatric Disease (RPD) Designation.

This follows the submission of results from the randomised controlled trial in children with hypoplastic left heart syndrome (HLHS). It is a potentially life-threatening congenital heart condition.

What does this mean?

The US FDA grants RPD Designation for certain serious or life-threatening diseases which primarily affect children.

This designation comes with the added benefit of a potentially valuable voucher down the line.

For example, upon FDA approval of a Biologics Licensing Application (BLA) for Revascor for the treatment of HLHS, Mesoblast may be eligible to receive a Priority Review Voucher (PRV).

This voucher can then be redeemed for any subsequent marketing application. It may also be sold or transferred to a third party.

Trial results

The release notes that the company’s stem cell treatment delivered promising results.

It was conducted in 19 children with a single intramyocardial administration of Revascor at the time of staged surgery. This action resulted in the desired outcome of significantly larger increases in left ventricular (LV) end-systolic and end-diastolic volumes over 12 months compared with controls as measured by 3D echocardiography.

Management notes that these changes are indicative of clinically important growth of the small left ventricle. This facilitates the ability to have a successful surgical correction, known as full biventricular (BiV) conversion. Without a full BiV conversion the right heart chamber is under excessive strain with increased risk of heart failure and death.

Mesoblast’s Chief Executive, Silviu Itescu, was pleased with the trial results. He said:

Given the impressive enlargement of the left chamber we have seen in these children treated with REVASCOR in the randomized controlled trial and the increased ability to successfully accomplish life-saving surgery, we plan to meet with FDA to discuss the potential for this trial to support accelerated approval in this indication.

The post Why are Mesoblast shares rocketing 28% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Arcadium Lithium, Core Lithium, Fortescue, and Mesoblast shares are pushing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/i5zUfrI

Kali Metals Ltd (ASX: KM1) shares have been on a wild ride since landing on the ASX boards following the lithium explorer’s IPO.

But what would have happened if you had invested $10,000 into the company’s shares ahead of its listing? Let’s find out.

What is Kali Metals?

Firstly, in case you’re not familiar with the Australian share market’s latest ASX lithium share, let’s have a quick look at it.

Kali Metals is a lithium explorer with a portfolio of lithium projects primarily in the Pilbara and Eastern Yilgarn regions in Western Australia. This includes its DOM’s Hill and Marble Bar projects, which are co-owned by Chilean lithium giant Sociedad Química y Minera de Chile (NYSE: SQM).

The company attracted a lot of interest this month when a number of rich listers took part in its IPO. One of those was Mineral Resources Ltd (ASX: MIN) founder and CEO, Chris Ellison.

He personally invested in the IPO, with Mineral Resources then quickly acquiring a 10% holding separately following its listing.

What is $10,000 worth now?

If you had followed Ellison’s lead and took part in the IPO with a $10,000 investment, you would have ended up owning 40,000 Kali Metals shares.

Since listing at 25 cents per new share, the company’s shares have been as high as 89 cents.

If you were to have sold your holding at that point, your 40,000 shares would have had a market value of $35,600. That’s over $25,000 more than your original investment in a matter of days.

Unfortunately, Kali Metals shares haven’t managed to stay at those lofty levels and are currently fetching 55.5 cents.

This means that a $10,000 investment would currently be worth $22,200.

While not as great as selling at the top, this is still more than double your original investment in just over a a week. Pretty stellar!

The post Here’s how much you’d have now if you invested $10,000 into the Kali Metals IPO appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why I’d consider buying Mineral Resources shares to tap into Kali Metals
• Why is Kali Metals soaring again while Core Lithium shares slide?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Ul7Zizw

Lovisa Holdings Ltd (ASX: LOV) shares have had a tough start to 2024.

Since the turn of the year, the fashion jewellery retailer’s shares have lost over 8% of their value.

This means that they are now down by almost 13% on a 12-month basis.

While this is disappointing, a number of brokers appear to see it as a buying opportunity for investors.

Lovisa shares tipped as a buy

One of the most bullish brokers out there is Morgans.

Its analysts currently have an add rating and $27.50 price target on the company’s shares. This implies potential upside of 22.5% for investors over the next 12 months.

The broker is also forecasting a fully franked 3.1% dividend yield in FY 2024, which stretches the total potential return to almost 26%.

Morgans is bullish due to the company’s low price points (which help in a tough consumer environment) and its global expansion plans. In respect to the latter, last year the broker said:

LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand. Investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar.

Elsewhere, the team at Bell Potter is feeling very positive and has a buy rating and $25.00 price target on its shares. This suggests upside of approximately 11.5% for investors from current levels.

Once again, the main reason for this bullish stance is the company’s expansion plans. The broker explains:

We maintain our BUY rating as we remain constructive on the company’s ability to execute on a large and under-penetrated global roll-out opportunity as a strong player in the fashion jewellery market.

All in all, it seems that now could be a good opportunity for investors to buy (and hold) this exciting company at a good price.

The post Lovisa shares: Should you buy the 2024 dip? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX investors: Where I’d invest $7,000 in 2024
• Brokers say these ASX 200 growth shares can rise 25% to 30%
• There’s great value right now in the ASX 200, especially in stocks like this one
• Targeting a $53,000 second income starting with just $1,000 of savings?
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/TSJOEXh

BHP Group Ltd (ASX: BHP) shares were under pressure on Thursday.

The mining giant’s shares ended the day almost 2% lower at $45.73.

This was driven by the release of a quarterly update which fell a touch short of the market’s expectations.

Should you buy BHP shares?

One leading broker that believes investors should buy the dip is Goldman Sachs.

According to a note, the broker has responded to the Big Australian’s quarterly update by retaining its buy rating with a trimmed price target of $49.40.

Based on its current share price, this implies potential upside of 8% for investors over the next 12 months.

And with Goldman forecasting a 5% dividend yield in FY 2024, the total potential return stretches to 13%.

What did the broker say?

Goldman wasn’t overly impressed with BHP’s quarterly update but has seen enough to remain positive. It said:

BHP reported a slightly weaker than expected Dec Q with copper and met coal production -6%/-9% vs. GSe but iron ore production/shipments of 72.7/70.3Mt were in-line with GSe. FY24 guidance is unchanged except for met coal, which has been cut by ~20% to 23-25Mt. Copper realised pricing for Dec H was +3% vs GSe, iron ore in-line, while coal and nickel pricing were lower than GSe reflecting product realisations and sales timing.

The broker also believes BHP’s shares deserve to trade at a premium to peers due to its superior operations. It adds:

BHP is currently trading at ~6.0x NTM EBITDA, (25-yr average EV/EBITDA of ~6-7x) vs. RIO on ~5.5x. BHP is trading at 0.95x NAV (A$48.6/sh), vs. RIO at ~0.9x NAV. That said, we believe this premium vs. peers can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers), high returning copper growth, and lower iron ore replacement & decarbonisation capex.

The post Are BHP shares a buy following the miner’s Q2 update? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• BHP shares tumble after missing expectations in second quarter
• 5 things to watch on the ASX 200 on Thursday
• ‘Deteriorating demand’: Should you be worried about your BHP shares in 2024?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3ayQiMh

Owning a few blue chip ASX 200 shares can be a good way of ensuring you have a rock-solid investment portfolio.

But deciding which blue chips to buy over others is not easy. But don’t worry, because analysts at Goldman Sachs have done the hard work for you.

Listed below are three blue chips that the broker rates very highly right now. Here’s what you need to know about them:

Endeavour Group Ltd (ASX: EDV)

The first blue chip ASX 200 share that Goldman Sachs has named as a buy is Endeavour.

It is the drinks giant behind the BWS and Dan Murphy’s brands, as well as a large network of hotels.

Goldman believes Endeavour’s shares are good value based on its leadership position and positive outlook. It explains:

Most attractive valuation amongst Staples peers: We continue to see defensiveness in the company’s Retail business with relative market share of ~35% vs COL liquor of ~13%, 5.2mn active My Dan’s members. EDV is currently trading at FY24e P/E of 18.4x with FY23-25e EPS CAGR of ~5%, which is the cheapest vs WOW, COL, WES.

Goldman has a conviction buy rating and $6.40 price target on the company’s shares.

ResMed Inc. (ASX: RMD)

Another blue chip ASX 200 share that Goldman Sachs rates as a buy is ResMed.

It is a sleep treatment company with a portfolio of leading hardware and digital solutions for disorders such as sleep apnoea.

Goldman Sachs believes the risk/reward is very attractive for investors at current prices. It said:

We view the risk/reward to be favorable and are Buy-rated. We view valuation as attractive and see a favourable risk-reward skew post the recent de-rate, noting the shares are trading meaningfully below historical averages on both a P/E and EV/EBITDA basis.

The broker has a buy rating and $32.00 price target on the company’s shares.

Woolworths Limited (ASX: WOW)

Finally, Australia’s largest supermarket operator could a blue chip ASX 200 share to buy according to Goldman.

Its analysts like Woolworths due to potential market share gains thanks to the strength of its loyalty program and its omni-channel advantage. The broker said:

We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.

Goldman has a buy rating and $42.40 price target on its shares.

The post Goldman Sachs says these blue chip ASX 200 shares are top buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• These ASX 300 dividend shares offer major upside and good yields
• Is the ResMed share price in the buy zone ahead of next week’s update?
• Top brokers name 3 ASX shares to buy today
• Will a competition review hurt Woolworths and Coles shares?

Motley Fool contributor James Mickleboro has positions in Endeavour Group and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Y0QAo86

The Accent Group Ltd (ASX: AX1) share price has done very well over the last several months, as we can see on the chart below.

Accent is one of the largest shoe retailers in Australia, it acts as the distributor for a number of different global brands including Vans, Ugg, Kappa, Hoka, Skechers, Dr Martens and CAT. The business owns a number of brands in Australia including The Athlete’s Foot, Glue Store, Nude Lucy, Stylerunner and Trybe.

Strong returns by the Accent share price

The ASX retail share has seen a rise of around 33% since the low in June 2023, which is a very strong return considering the S&P/ASX 200 Index (ASX: XJO) only went up by 3.8% over the same time period. That means the business has outperformed by around 30% in about seven months.

I wouldn’t expect the next several months to show that level of outperformance again because that’s not usually how things go – past performance is not a reliable indicator of future returns, particularly in the shorter term.

With a $1,000 investment, it would have turned into $1,330. A $3,000 investment would have turned into approximately $4,000. A $5,000 investment making a 33% return would become $6,660.

On top of that, the business has paid a dividend which boosted the return. The company paid a dividend per share of 5.5 cents a few months ago. That added an extra 3.6% of a return, which is a return of over 36%.

Can the ASX retail share keep rising?

Anything can happen on the ASX in the shorter term.

In the middle of last year, the Accent share price was suffering from an investor weakness as investors didn’t know how long the high inflation and interest rates were going to stay.

To me, it’s understandable that some investor confidence has returned with inflation reducing and interest rates look to have seemingly peaked.

2024 may see some weak trading conditions with households suffering amid a higher cost of living and high interest rates. But, if interest rates start to come down, we could see household budgets improving and spending more on retail, including shoes.

The company can also grow its number of stores, expanding its reach. The company is also looking to grow digital sales, which can help grow its market share. The business can also grow its brand portfolio or expand its own brands overseas.

By doing these things, the profit could keep rising and this can help the Accent share price.

The post The Accent share price has sprinted ahead since June! Here’s how much you’ve made appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These ASX 300 dividend shares offer major upside and good yields
• Top ASX shares for beginner investors to buy in 2024
• I could generate an extra $200 a month by buying 21,622 shares of this ASX dividend stock
• 3 ASX dividend stocks with big yields to buy now
• Why I think these 2 ASX shares are steals

Motley Fool contributor Tristan Harrison has positions in Accent Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ENJIkV1